Lockheed Martin has entered into a definitive agreement to acquire Sikorsky Aircraft from United Technologies Corp (“UTC”) for $9.0 billion approximately 13.0x Sikorsky’s LTM EBITDA. Lockheed Martin estimates the transaction will generate ~$1.9 billion of tax benefits over the next several years.
Bombardier Aerospace will likely experience delays on another program in the coming months as it has announced a “full review” of its new Global 7000 and 8000 business jet programs. The announcement of the review follows continuing revenue pressure, cost overruns, and other demands from the CSeries airliner as well as its halt in production of its Learjet 85 program.
For the second consecutive government fiscal year, the Small Business Administration announced that the Federal government had exceeded its spending goal for small business (“SB”) prime contracting (the most recent previous year where this was achieved was FY2006).
The Wall Street Journal reported that Lockheed Martin is in advanced talks to acquire United Technologies Corp’s (“UTC”) Sikorsky Aircraft business for approximately $8 billion, making it Lockheed’s largest acquisition in the past decade.
The explosion of SpaceX’s Falcon 9 rocket on June 28th has ignited discussion among military officials over the feasibility of running a competitive space launch program. Implications for a company that encounters a failure could be fatal as it would likely require shutting down that company for a significant period of time to investigate.
Recently announced acquisitions of Autonomic Resources, Carpathia, and Virtustream have all had one thing in common – a FedRAMP certification – the “Golden Ticket” in today’s crowded Federal cloud marketplace.
On Tuesday, Boeing announced that Dennis Muilenburg will replace Jim McNerney as Chief Executive Officer, effective in July of this year. Muilenburg joined Boeing in 1985 as an intern and throughout his tenure has held top positions in both the Defense Space & Security division and Combat Systems division.
Under mostly sunny skies and cool weather at Le Bourget, the Paris Air Show captured the aerospace/defense industry’s attention this past week. Order announcements came in much greater than pre-show predictions at 1,017 commitment orders and 206 option orders summing to ~$69.0 billion new business won.